Why these nations could leave the Eurozone

Fri, February 24, 2017

Heavily indebted Greece has no acute shortage of money, but will need money again from the ongoing aid programme this summer. But Athens is not the only shaky candidate of the Eurozone. These are the other countries causing worries

The experts pointed to Italy's new right-wing government, led by Giuseppe Conte, and its repeated threats to quit the eurozone.

Writing for Politico, they said: "Italy's flirtation with an exit from the euro under a populist government is a stark reminder that, if left unaddressed, the deep structural weaknesses that plague the single currency could trigger an existential crisis across the EU.

"It would be a mistake, therefore, to believe we can drive along in business-as-usual mode, or just take a few small steps toward more European integration.

"This week's Meseberg Declaration signed by Angela Merkel and Emmanuel Macron, although a step in the right direction, is part of a collective denial about what needs to be done.

"You don't need to be a populist to recognise that Europe's monetary union is dysfunctional and in dire need of more substantial reforms that those proposed by Germany and France."

The German Chancellor and French president signing the Meseberg Declaration (Image: GETTY)

Mrs Merkel and Mr Macron's declaration, signed in Germany on Wednesday, saw the pair agree to create a new budget for the eurozone.

At a joint press conference, the German Chancellor said the eight-page document marked a "new chapter" for the currency union.

But the leaders' declaration attracted widespread criticism because it includes few details about the size of the budget.

Mr Macron said he wanted to leave more room for negotiations with the other 17 euro members – a scenario that could see the plans watered down.

The eurozone is tearing on the brink of another crisis, according to experts (Image: GETTY)

Guntram Wolff, director of the Brussels-based think tank Bruegel, said: "Everything depends on the details that are not yet known.

"But without finishing the banking union, the euro area will remain fragile."

However, European Commission President Jean-Claude Juncker called the plans "very well balanced".

He said: "I am very pleased with the German-French paper. It allows European progress and the Commission is very pleased with what is being developed."